Affordable Care Act

Affordable Care Act

On February 8, 2013, the Centers for Medicare and Medicaid Services (CMS) published the final rule to implement section 6002 of the Affordable Care Act, which CMS calls the “National Physician Payment Transparency Program: OPEN PAYMENTS”. This is also commonly known as the “Sunshine Act”.

This final rule requires pharmaceutical and medical device manufacturers to report to CMS payments and transfers of value made to:

Physicians licensed in the United States

A specific list of teaching hospitals as designated by CMS

As of August 1, 2013, in order to comply with this new regulation, Allergan captures all payments and other transfers of value made to physicians and teaching hospitals. In addition, these payments and other transfers of value will be submitted to CMS by March 31 of each year.

Examples of payment types and other transfers of value Allergan will be tracking and submitting include:

Educational materials

Consulting

Compensation for services other than consulting

Research

Royalties and licenses

Grants

Business meals and business travel

CMS intends to make this information publicly available on an annual basis. The 2013 data will be made available as of September 30, 2014; and data for 2014 and beyond is scheduled to be made publicly available by June 30 of each subsequent year.

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